If you don’t think through your land development strategy you can be stuck with little or no land sales for a long time. The real estate risks may not be apparent to you but they certainly are to the real estate developer potentially buying your land.
We address what we believe to be 3 key aspects of greenfield Land Development Strategy:
- An Identifiable and compelling core
- Sufficient development density / GFA to support the core
- Seeding the core and supporting developments.
An Identifiable and Compelling Core
This is the key unlocking the value in your land development. An identifiable and compelling core is an absolute necessity for very large greenfield developments which are not close to existing population.
Make sense doesn’t it? People need someplace convenient to get groceries, amenities, basic services and sit down for a cup of coffee, right?
The master plan should reflect a core that’s appropriately scaled for the entire land development. Needless to say, actual development execution follows the growth of the project.
Development Density / GFA to support the core
The other critical aspect is a development density that’s sufficiently large to support the core. For example this could be:
- A suburban residential enclave large enough to support the initial phase of the town center, or
- One or more anchor resort hotels with enough rooms to support an adjacent new resort town.
Seeding both Core and Supporting Development
As a land developer you’ve got to have the financial capacity, not only to put in the infrastructure, but also to seed both the core and supporting developments. The key is to have them come up at the same time. You will not have synergies if one part is not developed.
Sounds like common sense?
In the second installment you will look at another set of basic Land Development Strategies – Infrastructure Roll-out and Zoning.